Teak Midstream has started operations at its South Texas gathering system and its Silver Oak (200 mmcfd) cryogenic processing plant. Teak has long-term midstream agreements with Comstock Resources, Statoil, and Talisman. With significant commitments, the company already plans to expand its gathering system by 200 mmcfd by the first quarter of 2014.

At the center of the development is Teak's Silver Oak Processing Plant, which is located near the community of Pettus, between Beeville and Kenedy in Bee County. The plant is specifically designed to handle high concentrations of liquid-rich gas. From the plant, residue gas will be transported by a 20-inch, 57 mile pipeline to various interstate pipelines and NGLs will be transported by a 12-inch, three mile pipeline to DCP's Sand Hills Pipeline. The Sand Hills pipeline ultimately delivers NGLs in Mont Belvieu.

“Teak Midstream is well positioned to serve new and existing customers who are pursuing liquids-rich gas in the Eagle Ford and other formations in South Texas. The proximity of our extensive gas gathering systems to escalating drilling activity is ideal, and our processing plant has extremely high NGL recoveries, making it one of the most efficient facilities in the region, which can improve wellhead value for our customers,” said TEAK Co-Chief Executive A. Chris Aulds. “

Teak Midstream's new gathering system actually includes two separate systems:

• One system is 178 miles of 24-inch and 16-inch pipelines that moves wet gas from Dimmit through Webb, La Salle, McMullen, and Live Oak counties on to the Silver Oak Plant
• The second system is 22-miles of 20-inch pipe moving rich gas from the Karnes area to the Silver Oak Plant in Bee County